The Real Estate Market's Most Common Questions Addressed
With the real estate market in an interesting place these days, there are a lot of things that both sellers and buyers should be aware of.
Normal questions that people are asking:
- How long will this process take?
During the building process, be aware that there could be material and labor delays, but with good communication with your team you should be able to work through it. Keep regular contact with your builder to ensure that things are moving according to plan and that there is no confusion regarding expectations, deadlines, etc.
- Once I sell my current house, can I expect to have a new home to move into right away?
If you need to sell in order to buy, it may be difficult to coordinate without an interim move. Check rental options in case it's needed for a temporary, interim scenario.
- Does buying a custom home make sense over an already built home?
If you have the luxury of buying without selling, enjoy the building process and create the home you truly want.
Expect that house prices are going to be higher when buying AND selling.
At this point in the pandemic, both sellers and buyers can expect higher prices than usual, as there is a surge when it comes to both buying and selling. With more people working from home and more people moving from the city to the suburbs, demand is high, and people must be adequately prepared when going into either the buying or selling process. You can most likely expect to see your house go under contract in record time, so you will need to plan accordingly for moving into your new house. That’s also why it’s an ideal time to have a custom-built home, as there is currently low housing stock for existing properties. It could also be a good time to look into buying in the city, as prices have dropped there, as opposed to the suburbs where demand has recently grown.
Interest rates are super low, good incentive, encouraging people to buy:
While prices might be higher for homes, interest rates are currently very low (under 3%!), thus making it an ideal time for purchasing a new house. And even if you need a mortgage, rates are low enough that buyers are easily getting small loans.
Buyers should be willing to go above asking price:
From cash offers to bidding wars, the market is on fire right now. Buyers should be prepared to go above asking price in order to make their offers as desirable as possible. While not ideal initially, the investment will ultimately reap rewards and you could secure the house of your dreams, which will only increase in value over time! And don’t forget, besides the sale prices, consider terms, quick closings, and no contingencies.
People want certain things in their house, like being in the suburbs, thinking about their home in multiple ways like working from home, can they have an office, a gym, etc.
In the past year, we’ve all endured many ups and downs and changes. In spite of the pandemic, some positives have emerged, and people have more clarity about what they might want in their daily lives--as well as in their “forever” homes! From home gyms to home offices to ample backyard space for gardens, there are so many ways to customize your home and truly make it your family’s personal oasis.
Have realistic expectations regarding delays and prices, as lead times are currently longer.
Custom built houses take longer due to delivery and order time, and you can expect to need to place orders in advance. Try not to have a specific time frame in mind, especially in the current market, as delays and challenges are likely to crop up. It’s important to have open and honest communication with your builders and other connections, so that everyone is on the same page as the building process commences. Work with a builder who communicates directly and honestly, and with someone who will determine your selection deadlines from day one to keep the process moving. At Elite, we take our relationships with clients very seriously and work hard to make the process of designing and building your potential forever home with respect and care.
Other things to consider:
- Which features will be desirable if/when you decide to sell in the future, such as:
home office; finished basement that can be turned into a gym, playspace, or home theater; kitchen with plenty of workspaces; backyard patio, stonescape, or deck.
- “Bonus” structures, such as a greenhouse or shed/enclosed gazebo that could be used for an office, guest room, or studio space.
- An all-season porch for entertaining and hosting overnight guests.
- Customize your home to suit your taste, needs, and lifestyle. You may not get it all back in the resale, but you will have customized it according to your individual preferences!